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Initially, the program is positioned in an extremely odd and non-helpful governmental place for the excitement of international investment in the United States. Second, its scale is all incorrect. We are handing out way too much for also small of an investment. Additionally, increasing endeavor capital half a million dollars a tranche is, to claim the least, ineffective.


The local centers, with their half-million schemes, basically undercut the a lot more sensible million-dollar part of the EB-5 program. Third, such programs, if we have them whatsoever, as they perform in Australia, should have to do with creating business entities, not easy investments. It needs to have to do with developing actual work, not specify estimations about the indirect development of jobs, which is now component of the legislation.


Maybe that is one of the reasons why it has stopped working every year to reach the legislative objective of 10,000 financial investment visas. Fifth, the Regional Facility Program is naturally clumsy, and the program is also full of intermediaries, both public and personal. The program has even more than its share of scandals, which I will certainly enter later on if any person is interested.


This is a firm that loves to say yes to applicants, however as the table in my testament reveals, USCIS officers have far more trouble with EB-5 applications than others. I assume that is something that no one has actually actually spoken around a lot. EB5 Regional Center Program. There are high rates of interior denials in this program and forever reason

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Seventh, in this program visas most likely to individuals who can not get them differently and to people whose scheduled financial investment is really less, according to the Federal Get, than the average mean net well worth of all American households in 2007. Let me increase on one of my observations.


My estimate based upon the capitalists' eco-friendly card applications filed 2 years after the first investment-- these are the strong ones that remain and are authorized. This is 2009-- was that they had concerning $191 million confirmed-- that is my estimate. USCIS does not supply the type of data that we might utilize on this.


For every $100 of raised foreign financial investment that year, the EB program contributed one cent. Under a far more unsteady statistical base, the view publisher site first applications of prospective immigrant financiers, USCIS is informing reporters that the degree of investment in the just-concluded year had to do with $1.2 billion. Allow us approve that.

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Thank you for paying attention to me. I expect your remarks and inquiries. [The ready declaration of David North shows up as a submission for the document.] Chairman Leahy. Thank you. Our next witness is Robert Divine. He is an investor of Baker, Donelson, Bearman, Caldwell, and Berkowitz. He is the head of the company's immigration practice team.




Divine acted as Principal Counsel of the USA Citizenship and Immigration Solutions from July 2004 up until November 2006, the year in which he was Acting Director, and then Performing Deputy Director. He has worked thoroughly with the EB-5 program secretive technique. He was chosen, as I recognize, vice president of the Organization to Buy U.S.A., the nationwide industry organization of regional centers.


Divine, we are delighted to have you right here. Please go on, sir. DECLARATION OF ROBERT C. DIVINE, LAWYER, BAKER, DONELSON, BEARMAN, CALDWELL, AND BERKOWITZ, P.C., CHATTANOOGA, TENNESSEE, AND VICE PRESIDENT, INVEST IN THE USA (IIUSA) Mr. Divine. Thanks, Mr. Chairman, Legislator Grassley, and others. Thank you for having me.


At the majority of, if all 10,000 slots were used, it would be 1 percent of the migration every year to the United States. It is not near that yet, yet it is expanding and obtaining toward that. Specifically as USCIS, the firm that looks after the program, has actually go to this website been making the regulations clearer and the processes more logical and clear for individuals that are arranging financial investments and visit this site for the investors who are spending, even more people have agreed and able to put initiative and money right into the process to find excellent jobs and develop them, and then a lot more investors have wanted to invest their money and take the threat and use the cash to develop the tasks that is the point of the program.

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These tasks do not linger for life, and USCIS understands that and are attempting to speed up the program, speed up the process - EB5 Regional Center Program. That does not suggest that they are unwinding their examination, and, as a matter of fact, they prepare to deny applications that are not qualifying. And they do so, as was discussed


The local center part of the program is not. It belongs to an appropriations costs that was passed in 1992, and ever since that program has been expanded five times for 19 years. It is time for it to be long-term, and it needs to be done currently and not nearer to the day of expiration in September.


The procedure takes an excellent while to develop a project and then to obtain the financiers accepted. And they do not want their money streaming through till they have been authorized. And the specter of the expiration of this Regional Facility Program in September is currently dissuading the growth of projects.

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I want to make clear that the Regional Facility Program is not the exact same as the half-million-dollar point. The idea of half a million or a million is a feature of the normal EB-5 regulation that belongs to the code. It simply is a truth that the majority of the regional centers that are merging financial investments have established those in locations of high unemployment or in rural locations where half- million-dollar financial investments are enabled, which makes sense.